In the less-than-truckload supply chain, rapid technological advancements in shipper-to-carrier communications have opened up new ways to do business. For individual shipment-related queries, shippers and other logistics providers can now connect directly to their carrier partners. The argument is that by going directly to the carrier via transactional application programming interface (API) technology, shippers can receive valuable data in real time. As a communication tool, APIs are actually nothing new; technology companies have utilized high-horsepower APIs built to help shippers optimize and analyze LTL spend in their solutions for years. Companies that provide transactional API solutions are propping up the latest advancements as transportation game changers.
This year, I expect trucking capacity to remain tight because of continued economic growth and the impact of ELDs. This may place upward pressure on rates. It is important for shippers and third-party logistics providers to be prepared for rate negotiations and to utilize technology tools that ensure they retain pricing influence in discussions with carriers.
While transactional APIs are incredibly useful and should be a tool in any shipper’s array of solutions, they may not always be the best option. Shippers and 3PLs that need to rate a vast amount of shipments in a small amount of time need more computing power. These customers should search for robust rating solutions that offer single-shipment response times in milliseconds, but can also batch rate thousands of shipments in minutes.
As the transactional API economy continues to expand in the supply chain arena in 2018, customers need to carefully examine all the options. The ability to swiftly determine transportation pricing is key to a healthy, effective supply chain. Finding a solution that can quickly return shipment pricing, provide enough horsepower for detailed analytics, and fuel shipment-mode optimization processes will never be out of style.